Analyzing Lennar (NYSE:LEN.B) & Taylor Wimpey (OTCMKTS:TWODY)

Taylor Wimpey (OTCMKTS:TWODY) and Lennar (NYSE:LEN.B) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Insider & Institutional Ownership

3.3% of Lennar shares are owned by institutional investors. 15.0% of Lennar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Taylor Wimpey and Lennar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Lennar	6.08%	9.27%	6.05%

Earnings & Valuation

This table compares Taylor Wimpey and Lennar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	1.18	$433.99 million	N/A	N/A
Lennar	$34.19 billion	0.73	$2.08 billion	$12.09	8.09

Lennar has higher revenue and earnings than Taylor Wimpey.

Analyst Ratings

This is a breakdown of current ratings and target prices for Taylor Wimpey and Lennar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	1	3	1	1	2.33
Lennar	0	0	0	0	0.00

Dividends

Taylor Wimpey pays an annual dividend of $1.09 per share and has a dividend yield of 7.5%. Lennar pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. Lennar pays out 16.5% of its earnings in the form of a dividend.

Risk & Volatility

Taylor Wimpey has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Lennar has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Lennar beats Taylor Wimpey on 8 of the 14 factors compared between the two stocks.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. It primarily sells single-family attached and detached homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The company also offers residential mortgage financing, title insurance, and closing services for home buyers and others. In addition, it involves in the fund investment activity; and originates and sells into securitizations commercial mortgage loans. Further, the company develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida.